H&S buy opportunity GBP/CAD

31 thg 3, 2021

Pair retraced to 61.8% of last up move. It broke down trend line and in it is currently creating possible reverse Head & Shoulders pattern. This could be a good buy opportunity. Right shoulder hasn't been completed yet. 200 MA is providing support on Daily chart and I'm expecting another test of that support. If pair confirms that support I would buy pair at 1.7300-1.7310 with stop loss bellow left shoulder low (65 pips bellow) and take profit little bellow 61.8% retracement of this down move. In this scenario Risk to reward is 1:4. If pair fails to reach my entry point, look for entry at break of neck line with stop loss bellow shoulder and take profit at 61.8% retracement of down move. In this scenario risk to reward is 1:3